Payroll Expense Tax 2018
The Payroll Expense Tax rate for tax year 2018 will be calculated using tax data as of July 1, 2018 and will be announced on or before September 1, 2018, in accordance with City law. The 2018 Payroll Expense tax rate will apply to future tax years as well. The Payroll Expense Tax rate for tax year 2018 may be in the range of 0.4% (0.004) to 0.6% (0.006), according to projections by the City Economist published in 2017.
For taxpayers filing their final return prior to the announcement of the Payroll Expense Tax rate for tax year 2018, or taxpayers that wish to accrue obligations, a provisional rate of 0.448% may be used.
The provisional Payroll Expense Tax rate has been calculated by increasing the Payroll Expense Tax adjustment factor from tax year 2017 (0.336%) by 133%, the same percentage that Gross Receipts Tax rates will increase in tax year 2018. If the actual 2018 Payroll Expense Tax rate is less than 0.448%, taxpayers may request a refund within the time limits of City law.